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News Summary: SEC: Cohen didn't stop inside trades

The Associated Press

SHOT AGAINST HEDGE FUND BOSS: The Securities and Exchange Commission leveled its most direct shot against billionaire hedge-fund manager Steven A. Cohen on Friday by filing civil charges that accuse him of failing to prevent insider trading.

ILLEGAL PROFITS: The SEC alleges that Cohen, who founded and runs SAC Capital Advisors, failed to prevent two of his portfolio managers from illegally reaping profits and avoiding losses of more than $275 million. Both managers provided information to Cohen in 2008 that suggested they had access to inside information, the SEC said.

FACES POSSIBLE BAR: Cohen faces possible fines and could be barred from managing investor funds.